Automotive Infotainment Systems Market Segmented By Vehicle Type (Passenger Cars, Commercial Vehicles), By Application (Navigation, Media, Communication, Payment Services, and Telematics), By Distribution Channel (OEM and Aftermarket), By Regional, Competition, Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 27.43 Billion
CAGR (2026-2031)	6.12%
Fastest Growing Segment	Passenger Cars
Largest Market	Asia Pacific
Market Size (2031)	USD 39.18 Billion

Market Overview

The Global Automotive Infotainment Systems Market will grow from USD 27.43 Billion in 2025 to USD 39.18 Billion by 2031 at a 6.12% CAGR. Automotive infotainment systems refer to the integrated hardware and software platforms within vehicles that deliver information, entertainment, and connectivity services to occupants. The market is primarily driven by the increasing consumer expectation for seamless smartphone integration and the growing necessity for intelligent telematics to comply with safety regulations. Additionally, the transition toward software-defined vehicles is accelerating the demand for these advanced digital interface technologies.

According to the Consumer Technology Association, in 2024, the number of exhibitors in the vehicle technology and mobility category at their annual industry event more than doubled to over 700, underscoring the sector's rapid expansion. Despite this growth, the market faces a significant impediment due to persistent semiconductor supply chain disruptions, which continue to constrain the availability of essential electronic components and delay the production of these complex systems.

Key Market Drivers

The rapid adoption of connected car technologies and 5G connectivity is fundamentally reshaping the market by enabling high-speed data transfer essential for modern digital cockpits. This connectivity supports features such as real-time navigation, multimedia streaming, and over-the-air updates, which automakers increasingly prioritize to maintain vehicle relevance post-purchase. The integration of these communication standards allows manufacturers to transform vehicles into connected hubs, necessitating robust infotainment architectures that manage complex data streams while delivering an immersive user experience. According to Qualcomm Technologies Inc., January 2024, in the 'CES 2024' announcement, the company disclosed that its automotive design-win pipeline had grown to $45 billion, reflecting the intense industrial demand for advanced digital chassis and connectivity platforms.

The rising global sales of electric and autonomous vehicles further propel this sector, as these platforms require centralized high-definition interfaces to manage battery data, charging stations, and driver-assistance visualizations. Unlike internal combustion engines, electric vehicles often utilize large touchscreens to replace physical controls, making the infotainment system the primary interaction point. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', electric car sales reached nearly 14 million in 2023, creating a substantial install base for next-generation interface hardware. This surge impacts major component suppliers who are scaling operations to meet the requirement for integrated display solutions. For instance, according to LG Electronics, in 2024, the Vehicle component Solutions Company reported an annual revenue of KRW 10.1 trillion, driven largely by the order backlog for electric vehicle parts and infotainment units.

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Key Market Challenges

Persistent semiconductor supply chain disruptions present a critical obstacle to the growth of the global automotive infotainment systems market. Modern infotainment platforms rely heavily on advanced integrated circuits to power high-definition displays, process real-time telematics, and facilitate seamless connectivity. When the availability of these essential electronic components is constrained, manufacturers encounter severe production bottlenecks. This dependency creates a vulnerability where shortages force automakers to either delay vehicle assembly or ship units without standard infotainment features, directly restricting revenue realization and slowing the adoption of next-generation digital interfaces.

The instability in the component sector significantly hampers the industry's ability to meet rising orders. According to the IPC, in May 2025, 53% of electronics manufacturers reported that supply chain uncertainties were directly delaying their investment and sourcing decisions. This hesitation and the inability to secure consistent inventory prevent infotainment suppliers from fulfilling the escalating demand for intelligent cockpit experiences. Consequently, the market struggles to convert consumer interest into actual volume growth, as the gap between component availability and production requirements remains a substantial barrier to expansion.

Key Market Trends

The expansion of in-car gaming and high-fidelity video streaming is transforming vehicles into immersive third living spaces, particularly to capitalize on dwell time during electric vehicle charging. Automakers are increasingly collaborating with cloud gaming platforms to integrate console-quality entertainment directly into the infotainment stack, often utilizing passengers' smartphones as controllers to eliminate the need for dedicated hardware. This shift moves beyond simple navigation displays, positioning the digital cockpit as a central hub for social interaction and content consumption. According to the BMW Group, August 2024, in the 'World Premiere of UNO Car Party!' press release, the company announced the over-the-air rollout of the popular card game to over 500,000 vehicles, underscoring the massive scale at which manufacturers are deploying interactive entertainment features to enhance the user experience.

The transition to Software-Defined Vehicle (SDV) architectures represents a fundamental structural shift, decoupling software innovation from hardware development to enable continuous lifecycle management. This architecture allows OEMs to deploy centralized high-performance computing platforms that support complex functionalities, such as real-time virtualization and advanced safety systems, through standardized middleware. As manufacturers prioritize these scalable software foundations to secure future recurring revenue streams, the commercial pipeline for embedded operating systems has surged. According to BlackBerry Limited, April 2024, in the 'Fourth Quarter and Full Fiscal Year 2024 Results' report, the company disclosed that its QNX royalty backlog had reached $815 million, reflecting the intensifying industrial reliance on robust software platforms to drive next-generation vehicle intelligence.

Segmental Insights

The Passenger Cars segment is currently recognized as the fastest growing category in the Global Automotive Infotainment Systems Market, primarily driven by increasing consumer preference for seamless connectivity and immersive in-cabin environments. Automakers are actively prioritizing the integration of smartphone compatibility and navigation tools to align with these evolving demands. This upward trend is further reinforced by safety mandates from institutions such as the European Commission, which necessitate the installation of visual display units for driver assistance functions. Consequently, the widespread incorporation of these technologies in personal vehicles continues to fuel the sector's rapid development.

Regional Insights

Asia Pacific holds the leading position in the Global Automotive Infotainment Systems Market, driven primarily by substantial vehicle production volumes in major economies such as China, Japan, and India. This regional dominance is reinforced by rising consumer demand for in-vehicle connectivity and navigation features. Furthermore, government mandates regarding passenger safety and telematics have accelerated the installation of integrated display systems in new automobiles. The concentration of major electronics manufacturers in this region ensures a robust supply chain, allowing for the consistent integration of these technologies across both passenger and commercial vehicle segments.

Recent Developments

• In October 2025, Applied Intuition and Stellantis entered into a strategic collaboration to develop and deploy intelligent in-vehicle infotainment systems across the automaker's global brand portfolio. This partnership leverages a specialized platform powered by cabin intelligence software, enabling the creation of highly customized digital interfaces that reflect the unique identity of each vehicle brand. The solution addresses the need for faster innovation cycles by allowing scalable, white-box configuration of the infotainment stack. By embedding advanced intelligence into the cockpit, the companies aim to provide drivers with a modern, responsive, and tailored user experience that evolves over the vehicle's lifecycle.
• In October 2024, Qualcomm Technologies introduced the Snapdragon Cockpit Elite and Snapdragon Ride Elite automotive platforms, featuring the powerful Oryon CPU. These new platforms represent a major research breakthrough, offering a threefold performance increase over previous generations to support complex digital cockpit and automated driving functions. The flexible architecture allows automakers to run mixed-criticality workloads on a single chip, enhancing the responsiveness and capability of in-vehicle displays and AI agents. Major automotive manufacturers, including Mercedes-Benz and Li Auto, confirmed their intention to integrate these platforms into future models to deliver unmatched, personalized infotainment and safety experiences.
• In March 2024, NVIDIA announced that BYD would adopt the DRIVE Thor centralized car computer to power the next generation of its electric vehicle fleets. This advanced system-on-chip serves as the AI brain for the vehicle, integrating automated driving, parking, and intelligent infotainment capabilities into a single platform. The partnership also encompasses the use of AI infrastructure for cloud-based development and virtual factory planning using the Omniverse platform. This strategic move highlights the growing trend of utilizing high-performance computing to deliver seamless, software-defined in-vehicle experiences that combine safety features with cutting-edge digital entertainment and connectivity for drivers.
• In January 2024, Bosch and Qualcomm Technologies unveiled a central vehicle computer capable of running both infotainment and advanced driver assistance systems on a single system-on-chip. This innovative cockpit and integration platform utilizes the Snapdragon Ride Flex SoC to enable a unified computing architecture for next-generation vehicles. The technology allows for the simultaneous processing of diverse functions, such as automated parking and object detection, alongside rich infotainment features like multimedia streaming and navigation. By consolidating these domains, the collaboration offers automakers a scalable and cost-efficient solution to accelerate the development of software-defined vehicles across entry-level and premium segments.

Key Market Players

• Denso Corporation
• Robert Bosch GmbH
• Continental AG
• Harman International Industries Inc.
• Magnetic Marelli SpA
• Kenwood Corporation
• Alpine Electronics Inc.
• Mitsubishi Electric Corporation
• Visteon Corporation
• Pioneer Corporation
• Aptiv PLC

By Vehicle Type	By Application	By Distribution Channel	By Region
Passenger Cars Commercial Vehicles	Navigation Media Communication Payment Services Telematics	OEM and Aftermarket	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automotive Infotainment Systems Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Automotive Infotainment Systems Market, By Vehicle Type:

• Passenger Cars
• Commercial Vehicles

• Automotive Infotainment Systems Market, By Application:

• Navigation
• Media
• Communication
• Payment Services
• Telematics

• Automotive Infotainment Systems Market, By Distribution Channel:

• OEM and Aftermarket

• Automotive Infotainment Systems Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE